North Carolina Down Payment Assistance Systems

Online Merchant account - These systems are the Mortgage Credit Certificate and also the deposit Assistance System.

Should you qualify for one of those plans and you also buy a house between December 1, 2009 and January 1, 2009, you might also qualify for the $8,000 tax credit merely enacted into law.

First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a house within the past three years. This is the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and moderate incomes. The MCC takes this a step further.

You are able to claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes if you are eligible for the MCC. You can save around $2,000 on your taxes.

Should you qualify for 2009, for the MCC, you will have the ability to unite this with the $8,000 tax credit. This would reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any individual expected to reside in the residence who's 18 years of age or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Cost Limits New Home $220,000 Existing Home $210,000

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has stricter income limits than the MCC program summarized above. Like the MCC application, it can be used together with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can't be used in conjunction together with the MCC. This really is an either or situation.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Men $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing Residence $210,000